Cane Creek sewer might join regional authority

McGrady: Bill to create regional water, sewer board still a work in progress

Published: Saturday, December 29, 2012 at 4:30 a.m.

Last Modified: Friday, December 28, 2012 at 10:30 p.m.

A bill to create a regional water and sewer authority will include Henderson County's public sewer utility, state Rep. Chuck McGrady said. But he said the exact makeup of the authority's new governing board — a sticking point in past merger negotiations — is still undetermined.

The Henderson County Republican said he's asked General Assembly staffers to include the Cane Creek Water and Sewer District, which serves roughly 3,500 sewer customers in the Fletcher area, in a draft bill merging the city of Asheville's water system with Buncombe County's Metropolitan Sewerage District to form a regional utility authority.

"It's still a work in progress," McGrady said. "Come mid-January, I don't know where we'll be when all the legislators get together and say, ‘This is where we're going.' "

Henderson County officials said this week that they want to complete a wastewater treatment study before deciding whether joining a regional authority best serves Henderson County customers.

"I don't think it would be fair to Henderson County until we get that study completed and see what our options are," Board of Commissioners Chairman Charlie Messer said.

County Manager Steve Wyatt said he's looking at several alternatives for Cane Creek. The county could build its own wastewater treatment plant and "go it on our own"; become a partner in a new regional authority that "generates economies of scale both on the water and sewer side"; or perhaps sell its sewer system to a private entity.

The county already has an agreement with MSD to send up to 1.35 million gallons of wastewater per day to its Woodfin treatment plant, and it has discussed merging with MSD in the past for the sake of cost efficiency.

MSD officials estimate Cane Creek customers would save about $10 per month if the two utilities consolidated.

However, earlier talks fell apart over issues of governing power. County officials wanted "meaningful representation" on the MSD's board. They pointed out that the Cane Creek district serves an area ripe for economic development, and thus future revenues, yet is charged higher rates than customers in Buncombe County.

"My main concern is the rates," Messer said. "Why are we paying more for sewer than the people seven miles down the road?"

A bill passed by the General Assembly last year, introduced by McGrady and Rep. Tim Moffitt, R-Buncombe, would give Henderson County two seats on a merged sewer board, while Buncombe County and Asheville would each get three. To be "meaningful," Messer said Henderson County should get four slots on a nine-member board or five on a 10-member board.

McGrady cautioned that the 2011 bill simply was meant to eliminate "a political impediment in our effort last time to bring Henderson County into a combined sewer authority," not to reflect the potential makeup of a new regional water and sewer board, which is still up in the air.

"Once we create a statute that forms a (regional) water and sewer authority, we're going to have to change the whole governance formula again," McGrady said.

Asheville officials groused last week that McGrady's inclusion of Cane Creek's sewer in a new regional authority would force Buncombe's 51,000 ratepayers to subsidize necessary upgrades to Henderson County's small sewage system.

That argument ignores the fact that the two counties are economically interdependent, Henderson County Commissioner Mike Edney said.

"A lot of Henderson County residents work in Buncombe County and vice versa," he said, adding that the potential economic development in Fletcher and Mills River spawned by improved infrastructure "benefits the whole region, not just the people on the ground where the lines are going."

Moreover, McGrady and county officials pointed out the Cane Creek sewer system is considerably newer than Buncombe's, with capital needs normal for a system its size. County Engineer Marcus Jones said a 2009 study identified $26.3 million in capital expenses necessary to extend service throughout the district, but added the majority of those costs likely would be funded by grants and developers.

Steven Aceto, chair of MSD's board, said a recent study by his utility found a merger between MSD and Cane Creek "showed no impact at all to Buncombe County and an improvement for Henderson County." Even if plans for a regional authority fall apart, Aceto said MSD still would welcome absorbing Cane Creek's system.

<p>A bill to create a regional water and sewer authority will include Henderson County's public sewer utility, state Rep. Chuck McGrady said. But he said the exact makeup of the authority's new governing board — a sticking point in past merger negotiations — is still undetermined.</p><p>The Henderson County Republican said he's asked General Assembly staffers to include the Cane Creek Water and Sewer District, which serves roughly 3,500 sewer customers in the Fletcher area, in a draft bill merging the city of Asheville's water system with Buncombe County's Metropolitan Sewerage District to form a regional utility authority. </p><p>"It's still a work in progress," McGrady said. "Come mid-January, I don't know where we'll be when all the legislators get together and say, 'This is where we're going.' "</p><p>Henderson County officials said this week that they want to complete a wastewater treatment study before deciding whether joining a regional authority best serves Henderson County customers. </p><p>"I don't think it would be fair to Henderson County until we get that study completed and see what our options are," Board of Commissioners Chairman Charlie Messer said.</p><p>County Manager Steve Wyatt said he's looking at several alternatives for Cane Creek. The county could build its own wastewater treatment plant and "go it on our own"; become a partner in a new regional authority that "generates economies of scale both on the water and sewer side"; or perhaps sell its sewer system to a private entity.</p><p>The county already has an agreement with MSD to send up to 1.35 million gallons of wastewater per day to its Woodfin treatment plant, and it has discussed merging with MSD in the past for the sake of cost efficiency.</p><p>MSD officials estimate Cane Creek customers would save about $10 per month if the two utilities consolidated.</p><p>However, earlier talks fell apart over issues of governing power. County officials wanted "meaningful representation" on the MSD's board. They pointed out that the Cane Creek district serves an area ripe for economic development, and thus future revenues, yet is charged higher rates than customers in Buncombe County.</p><p>"My main concern is the rates," Messer said. "Why are we paying more for sewer than the people seven miles down the road?"</p><p>A bill passed by the General Assembly last year, introduced by McGrady and Rep. Tim Moffitt, R-Buncombe, would give Henderson County two seats on a merged sewer board, while Buncombe County and Asheville would each get three. To be "meaningful," Messer said Henderson County should get four slots on a nine-member board or five on a 10-member board.</p><p>McGrady cautioned that the 2011 bill simply was meant to eliminate "a political impediment in our effort last time to bring Henderson County into a combined sewer authority," not to reflect the potential makeup of a new regional water and sewer board, which is still up in the air.</p><p>"Once we create a statute that forms a (regional) water and sewer authority, we're going to have to change the whole governance formula again," McGrady said. </p><p>Asheville officials groused last week that McGrady's inclusion of Cane Creek's sewer in a new regional authority would force Buncombe's 51,000 ratepayers to subsidize necessary upgrades to Henderson County's small sewage system.</p><p>That argument ignores the fact that the two counties are economically interdependent, Henderson County Commissioner Mike Edney said. </p><p>"A lot of Henderson County residents work in Buncombe County and vice versa," he said, adding that the potential economic development in Fletcher and Mills River spawned by improved infrastructure "benefits the whole region, not just the people on the ground where the lines are going."</p><p>Moreover, McGrady and county officials pointed out the Cane Creek sewer system is considerably newer than Buncombe's, with capital needs normal for a system its size. County Engineer Marcus Jones said a 2009 study identified $26.3 million in capital expenses necessary to extend service throughout the district, but added the majority of those costs likely would be funded by grants and developers.</p><p>Steven Aceto, chair of MSD's board, said a recent study by his utility found a merger between MSD and Cane Creek "showed no impact at all to Buncombe County and an improvement for Henderson County." Even if plans for a regional authority fall apart, Aceto said MSD still would welcome absorbing Cane Creek's system.</p><p>Reach Axtell at 828-694-7860 or than.axtell@blueridgenow.com.</p>